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FOMC Statement
Information received since the Federal Open Market Committee met in
August suggests that economic activity has picked up following its
severe downturn. Conditions in financial markets have improved
further, and activity in the housing sector has increased. Household
spending seems to be stabilizing, but remains constrained by ongoing
job losses, sluggish income growth, lower housing wealth, and tight
credit. Businesses are still cutting back on fixed investment and
staffing, though at a slower pace; they continue to make progress in
bringing inventory stocks into better alignment with sales. Although
economic activity is likely to remain weak for a time, the Committee
anticipates that policy actions to stabilize financial markets and
institutions, fiscal and monetary stimulus, and market forces will
support a strengthening of economic growth and a gradual return to
higher levels of resource utilization in a context of price stability.
With substantial resource slack likely to continue to dampen
cost pressures and with longer-term inflation expectations stable, the
Committee expects that inflation will remain subdued for some time.
In these circumstances, the Federal Reserve will continue to employ
a wide range of tools to promote economic recovery and to preserve
price stability. The Committee will maintain the target range for the
federal funds rate at 0 to 1/4 percent and continues to anticipate that
economic conditions are likely to warrant exceptionally low levels of
the federal funds rate for an extended period. To provide support to
mortgage lending and housing markets and to improve overall conditions
in private credit markets, the Federal Reserve will purchase a total of
$1.25 trillion of agency mortgage-backed securities and up to $200
billion of agency debt. The Committee will gradually slow the pace of
these purchases in order to promote a smooth transition in markets and
anticipates that they will be executed by the end of the first quarter
of 2010. As previously announced, the Federal Reserve’s purchases of
$300 billion of Treasury securities will be completed by the end of
October 2009. The Committee will continue to evaluate the timing and
overall amounts of its purchases of securities in light of the evolving
economic outlook and conditions in financial markets. The Federal
Reserve is monitoring the size and composition of its balance sheet and
will make adjustments to its credit and liquidity programs as warranted.
Voting for the FOMC monetary policy action were: Ben S. Bernanke,
Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles
L. Evans; Donald L. Kohn; Jeffrey M. Lacker; Dennis P. Lockhart; Daniel
K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
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Bye bye, USD.
Seems the market discovered a new move on that non-announcement- straight vertical up.
This is all becoming a sick joke, really.
Basically, the looting continues!
Watch for the stealth QT
Quantitative Teasing?
Who says the FMOC isn't political. They told everyone exactly what they wanted to hear, just like any self respecting Senator or Rep would do.
aka - sell the dollar and buy AIG. US economy = joke
" ... economic activity has picked up following its severe downturn."
Wow. These guys are geniuses. Reminds me of John Madden - state the obvious in an attempt to make yourself sound smarter.
"ya see, what they're gunna try and do here is move the ball up the field"
Leisman is fricking retarded.
"not bad for the nation if the value of the dollar goes down, if the price of assets goes up."
He keeps saying really stupid things like "Buy American and you won't be affected."
I'm beginning to believe he's a CIA dis-information specialist planted on CNBC to help keep the natives calm. There's no other explanation for his stupidity.
Agreed...I only wish they'd gone back to santelli so he could have verbally abused him for his stupidity before I shut off the TV and permanently wrote off that world's stupid business channel.
Did you see the look on Bill Gross's face though.... It said it all one need to know about the self named "Professor" Liesman!
agreed. nice pick-up. both the look and the tone in his voice. i think he was blown away by the stupidity.
Back in the day they used to sterilize retards so they wouldn't bring about the Leismans of today.
Sure, Steve.
It's also not bad for someone to weigh 400 pounds, if you re-define a pound to equal 7.2 ounces.
LoL!
looks as if the fomc statement is frn coupon bearish. anybody surprised?
Meanwhile, anyone else here get the feeling that the comps are being set to trade on the occurence of news as opposed to the news itself? Like the very fact that a company makes an announcement sends its shares flying, as opposed to anything the announcement itself says good/bad? I guess the logical way to outgun this new trading technique is to just buy shares in everything, all the time.
Seems so. The claim was that the market shot up because the Fed left the main rate unchanged. Really??? Who thought they were going to hike it?? They may as well have shifted the rate negative and sent the Dow +200.
Computers may have been set to buy stocks and shank the dollar if the rate was unchanged.
Since all currencies are relative to each other, I have a strong feeling that the Europeans will ramp up the presses as well. Germany cant handle the Euro/USD at 1.60.
i disagree with the printing press comment (though I agree that Germany is in a really tough spot). it makes you wonder what sort of political tension there is going to be inside of Germany in a couple of years when things are getting worse and they are stuck with someone else's monetary policy.
Here is a german that is saying that the rumors over there say that the economic fireworks are being held off until the german elections are held at the end of the month. Because of this and other things, he says that October = crash.
http://www.youtube.com/user/jberni1#play/uploads/1/3d5fwYerL5k
very much worth watching this guys vids.
let the dollar collapse so we can have a real economy
where we have to manufacture. and so, we can abolish
the most evil, robbery institution Fed.
A lot of people will die with the USD.
Bernanke's "Death Panels"
Bernanke is a Hero! He really did save us.
It just seemed too easy of a trade to sell the dollar after the Fed statement. Yet when the move came it was dramatic but very quickly reversed. Just a feeling, but the ol gut says that today is a reversal day.
The ol gut is also terribly torn over Arby's new dollar menu :-)
No way... you KNOW the dow will have to touch 10,000 first. Could be today with the way this crazy casino runs.
USD drops and both stocks and treasuries spike higher? Why would bonds rally with stocks on the news unless they are pricing in an extension in QE?
What do you expect the Fed to say? "We spent a lot of money on a crisis we never saw coming and now it isn't any better." Of course, things are better because they said so. In the first paragraph, they state how things are improving but by the third paragraph they seem to contradict themselves when they say that policy will remain accommodative for a long time because he economy remains vulnerable. So what is it? It is the same old nonsense, and the only thing that matters is that stocks have moved 50% plus off the bottom. The only thing missing from the statement was "mission accomplished".
+10
The economy is getting better, but it isn't. Things are looking up and down. We are winding down special programs, but we aren't. The Fed likes to have its cake, eat it, and then give the cake to its friends so they can eat it too. It's appalling that they've backed themselves into this moral hazard morass where they are incapable of yanking the QE free money candy from Wall Street because it will "spook" the markets. Well, damn, "spook" the markets already, people chasing momentum in garbage stocks cannot say they don't know the risk involved. Buyer beware!
Eventually Bernanke will run out of fingers and toes to shove in the cracks of the dam.
Not the only crack he has his fingers (and head) shoved up.
There is actually a few other places to shove them...
buh bye, USD
The Fed are complete idiots and will run this economy into the ground......they haven't a clue (especially that dimwit Elizabeth Duke....who actually want the FASB to lie and fabricate accounting numbers)
if the fed bought every mortgage in the country would anybody have to pay their mortgage? afterall the fed would hold them at face whether they were being paid or at default. there's no audit so who would know whether the traunches were good or not.
Sometimes *I* take Metamucil to assist my
Quantitative Easing.
Google search
"Geithner strong dollar" 554k
"Geithner weak dollar" 55k
Now look at the graph.
When you listen carefully you can hear them howl in Beijing.
Dow = 10,000 here we come! Good Ol' Benny Boy was right! This recession really is over!
The Fed knows what's on its balance sheet?
The Roaring Oughts are coming to an end; the Greatest Depression looms. Until then, party at Gatsbys' house. Bring your own flapper.
They have now shown their entire hand. If there was any doubt about how they were going to play this out, there should be none any longer. Buy gold, buy silver, heck buy anything. It's all going up.
Not necessarily. I have 1076 as pivot, posted already on carry-thread, for short. 1076 has not been breached yet. I know this is lunatics running the asylum, but this has to stop somewhere, no one will take contrary positions any more, trading will stop, this can n.o.t. go on. Also cash-Japan is not responding, here in Europe no follow-up in o/n futs too, apart from initial spike.
Trading will *NOT* stop until all the insiders have sold their holdings. Then market will drop with nobody to cover their shorts, since there aren't any, so it will keep on going down. Then trading will stop. Didn't you get the memo ;o)
Djeezzz, as if I am clairvoyant! If they manage to hold the flatline today it will be an accomplishment already, 50/50 now for full unload 1054-1048 or flatline. 1072 should not be breached any more. Japs are gone, Europe is almost gone, EUR/USD says flat.
You nailed it, brother.
Thanks! Now its a goner, look at Naz too, 1734 is what they were aiming for, 1700 + 2%, coudn't hold it but oh boy they tried. However, coming days they will try and try and try again, they are scared shitless of the air pockets, especially around 1030, could drop through that zone before you can say f-f-fu-huck.
Rest of the week I am gone, some R & R, then its some end-of-Q BS next week and we're home free. succes everyone, don't despair, hope dies the last.
By Steak said: " Just a feeling, but the ol gut says that today is a reversal day."
It would be terribly disrepective of our Chinese masters, er colleagues, to have the markets tank before their 60th anniversay celebration is complete. A little more patience ...
China plans on "controlling the weather" on October 1, 2009 so that it won't rain and spoil their parade. Now I understand where the Fed gets the idea it can control the uncontrollable.
http://www.channelnewsasia.com/stories/afp_asiapacific/view/1006671/1/.html
Clearly we can take Obama at his word, as he is fulfilling one of his campaign promises to bring jobs back to America. We will be sewing sneakers and T-shirts in no time.
"In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability"
Communist Russia had price stability. In fact, they used to print the price of the product on the product itself. Find an old Russian toy, and the price is still stamped on it. (I'm sure Vitaliy from Contrarian Edge will confirm this). I'll look to see if I can find something, tho RoboTrader will have to teach me how to post pics on this site. Price stability, as a goal, is an asinine concept. Perhaps Bernanke should edumacate himself on how price is a function of Supply/Demand.
WAITTTTTTTTTTTTTTT! did they just say they were buying 1.25 trillion of agency MBS? 1.25 TRILLION? plus 200 BILLION, isnt that around 12% of GDP? is this new buying? WTF!!!!! tell me it isnt.. and what does "The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010" mean? the Fed will do this in thenext five months?!!! tell me again why the Fed's monehy is not government money and therefore part of the debt ceiling...anyway..leave that aside..we know its a shell game...the Central Bank of Zimabawe did the same, do the Bank of Japan, with different outcomes..is it legal to print your own money nd exchange it for the private idnividuals at the Fed yet?
Dan (kaching.com) posted this in regards to the fomc statement
http://1.bp.blogspot.com/_uzVbkLlVFKM/Srpmu8HNXuI/AAAAAAAACiE/lO4PZwksHf...
I warned Bernanke not to bring my moma, sista and my bitch into this......
For immediate release
Information received since the Federal Open Market Committee met in August suggests that hard-on activity has picked up following its severe downturn. Conditions in ho-bitch markets have improved further, and activity in the ass sector has increased. Hohouse spending seems to be stabilizing, but remains constrained by ongoing hand job losses, sluggish dick growth, lower pimp wealth, and tight pussies. Businesses are still cutting back on corn holing their staffs, though at a slower pace; they continue to make progress in bringing crack and crystal meth inventory stocks into better alignment with sales. Although groping activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize ho-bitch markets and institutions, manual and oral stimulus, and market forces will support a strengthening of dick growth and a gradual return to higher levels of pussy eating in a context of price stability.
With substantial tit slack likely to continue to dampen our dicks and with longer-term inflation expectations stable, the Committee expects that our hard ons will remain subdued for some time.
In these circumstances, the Federal Reserve will continue to employ a wide range of dildos to promote ho bitch recovery and to preserve schlong stability. The Committee will maintain the target range for our dicks at 12 to 14 inches and continues to anticipate that economic conditions are likely to warrant exceptionally high levels of manual and oral stimulation for an extended period. To provide support to my moma and sista and all the hos in the neighborhood and to improve overall conditions in private sex club markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt. The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010. As previously announced, the Federal Reserve’s purchases of $300 billion of Treasury securities will be completed by the end of October 2009. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in the ho-bitch markets. The Federal Reserve is monitoring the size and composition of its shit and will make adjustments to its ho and bitch programs as warranted.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker; Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
A break in the early winter snowstorm that shattered records and left citizens unable or unwilling to leave their homes for as long as two weeks finds them back out and shopping in droves!
Based on clear signs that people have indeed left their homes, Government officials have officially declared that winter is over!